Courtesy of Blain.
Often people only look at closing prices rather than the intraday action. While indeed the closing price is the most important thing, the intraday movement can give us hints of strength or weakness. To that end, the past 2 sessions we’ve seen weakness in the morning bought – which is a lot better than the opposite. The S&P 500 gained 0.28% and the NASDAQ 0.39%. In economic news, the private sector ADP payroll report was 173,000 in May, a touch below expectations for 175,000 jobs. Tomorrow morning should be dictated by the reaction to the employment data.
One thing to note: Economists expect the government’s report to show fewer payroll gains than the ADP survey because the government estimate will be held down by the impact of the month long strike by Verizon Communications workers. Roughly 35,000 striking workers were classified as unemployed in May due to the strike. The strike wasn’t included in the ADP estimate.
The indexes continue to hold onto their breakouts nicely.
As with yesterday the Russell 2000 outperformed which is another indicator of “risk on”.
The NYSE McClellan Oscillator remains firmly in positive territory.
This breakout in the biotechs looks more promising than the last time around.
Goldman Sachs cut its price target on Apple (AAPL) to $124 from $136. The investment bank also lowered its forecast for iPhone unit sales to 211 million from 212 million for 2016.
Box (BOX), a cloud storage company, reported first-quarter earnings that topped Wall Street estimates, but its stock fell after posting disappointing billings figures. Box reported adjusted loss per share of $0.18 on revenue of $90.2 million.
It was even a good day in brick & mortar retail! L Brands (LB) shares rose 4.3% following the Victoria’s Secret parent reported May sales data.
Oracle (ORCL) sunk 4% in the wake of allegations of improper accounting practices from a former finance manager. In a statement, Oracle said the employee was fired for poor performance and intended to countersue.
